Linkibuzz Edition 8

For this installment, we have some great stories from all over the startup world. Our first story takes a look at gender inequality in the workplace, specifically addressing the gender gap in the venture capital funding community.

We all know about Bitcoin. Supposedly it’s the currency that is set to take over the world. The only problem is that for many people, it’s still not being used as a viable alternative currency to money. However, this doesn’t mean there won’t be startups trying to make the most of the opportunities present in that industry. Not all are successful though as you’ll see in the second story.

Everyone in Britain is well aware of the looming referendum to vote on whether or not Britain remains in the EU. But what do British tech startups think about the entire thing? That’s what you’ll find out in our third story.

Lastly, a slightly concerning story from Silicon Valley that addresses why the number of startups has been steadily declining in the last three decades. This makes for some interesting reading so make sure you check that post out.

This article from ValueWalk raises issues that we as a society, and especially women, are all too familiar with. Essentially, this post is about gender inequalities in the workplace, but this also tackles a specific area, and that’s VC funding for startups founded by women.

The statistics on this present a bleak picture for female entrepreneurs. According to a recent report that examined 200 Bay Area startups, it was found that only 8% of those startups that received funding were led by women.

These results signal a lack of diversity in Silicon Valley startups and also affect the overall national competitiveness of startups. The gender gap in venture funding is clear and obvious as the report concludes, but as Ethan Mollick mentions, at least there is awareness about it so future changes can be made.

The post does a great job of raising awareness about the issue and providing a range of possible explanations why this occurs.

Everyone has heard of Bitcoin, and that it’s supposedly the new currency that could change the way we accept payments. While it’s a great idea, it’s still not a solid currency and that’s because for most people it’s still considered an asset rather than a currency.

Of course, we were going to see businesses start accepting Bitcoin payments in addition to other payments or perhaps both. However, what we have seen as this post points out is that some companies will even open up in this industry. The company in question is called YellowPay.

YellowPay was the first Bitcoin startup in the Middle East, which specifically served e-commerce companies promoting Bitcoin as a viable alternative to other payments. However, now they have gone belly up.

Investors are no longer interested in the startup and it seems as if the company fell, which resulted in the company’s demise. While this is a big dent for the industry seeing the first company offering Bitcoin go under, it is not inspiring to the rest of the industry.

In fact, while Bitcoin is still here, there is going to be many opportunities for other companies similar to YellowPay that try and make a dent in the industry because it’s going to excite many ambitious entrepreneurs looking to make Bitcoin a legitimate form of currency.

It seems every startup based in the UK is trembling at the thought of a Brexit in the upcoming referendum on whether or not Britain should remain in the EU. There’s no doubt that if the UK leaves the EU, it will affect startups and this opinion has been loud and clear from the startup community.

One of the major industries that feature startups in Britain is the tech industry. But, what exactly do they think about a potential Brexit?

That’s exactly what this post explores. It’s revealed that there are two main areas of concern for British tech startups:

Attracting talent

Increased difficulties hiring outside of the UK

No doubt that both of these areas will majorly affect British tech startups. By being in the EU, they have access to a talent pool of workers across Europe. It also makes it much easier to hire those workers, especially if they’re from EU member countries.

While alternatives have been presented, such as that of a points system and looking to an international talent pool, there are many more complexities involved. Overall, it’s fair to say that life is going to become much harder for British tech startups if Britain leaves the EU.

This post points to a worrying trend that has gradually increased over the past three decades – that the number of US startups is falling. We know that Silicon Valley is a global hub for the startup scene and there are currently around 23,000 startups now in Palo Alto. While those numbers seem big, the reality is that it has gradually decreased steadily.

Now the question many people are asking is: What is the cause of this decline?

The fact is that there is no simple answer. No one really seems to have a solid answer to explain this. Some point to economic circumstances and some point to the government.

An interesting point made by the writer is that many young people today are already dressing like entrepreneurs. They’re talking about technology, innovation and other things related to startups without actually being involved in one. The writer also points to a cultural change. Back in the 1960s and 1970s, people were more rebellious and born in a time when dropping out of the establishment seemed like the way to go.

For many startup founders, it wasn’t so much about getting venture funding as it was about expressing a passion. It was out of this that an informal startup culture was born and became mainstream. It’s an interesting explanation for the steady decline in startups and one you should certainly check out.

Closing

We hope you have enjoyed this week’s Linkibuzz post and we’re hopeful it has given you some interesting insights into the startup world.

First, we looked at explanations for why female-led startups are not receiving the same amount of venture capital funding as male-led startups. Second, we explored the Bitcoin industry and a startup that failed in that industry. However, this won’t be the end of opportunities in that industry.

Next, we looked at what British tech startups think of the looming referendum on whether or not Britain remains in the EU. Lastly, we explored the reasons why the number of US startups have been declining over the last three decades.

It was a great Linkibuzz, so we hope you enjoyed the stories and will stay tuned for next week’s Linkkbuzz post.

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“I don’t want to spend an arm and a leg to get this done.”– Luke, Founder and CEO of Happy Clouds LTD

Luke is founder and CEO of Happy Clouds LTD, a cloud service provider for companies of all sizes. He started this business by himself but shortly after took on a co-founder, Lucy. Luke and Lucy have been working together for a year but have yet to set up a shareholders’ agreement.

They have been bootstrapping Happy Clouds’ growth and so have spent the bare minimum. A year on, the business is generating revenue and as the client base grows, Luke and Lucy need to ensure that their business foundations and customers contracts are bulletproof.

Luke and Lucy are fast-paced – they don’t have time to spend explaining their business model to lawyers, they want someone who can quickly understand what they want and run with it. They also don’t want to spend an arm and a leg to get this done.

Luke and Lucy come to Linkilaw. After getting their initial terms of business set out, they realise they also will need another 3 to 4 contracts in the next 12 months.

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Contracts (drafted by specialist lawyers)

4 contracts

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Bonus legal advice

Digital only

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Over non-members

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7 working days

Annual business review conference call

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£2,500/year or £235/month

“We are scaling up but we want to make sure we get everything updated and in place too.”– Liam, Co-Founder of WineToGo

Liam is the co-founder of WineToGo. His business sources wine from a large network of wine producers and helps their customers select the best wines for their taste to get delivered to their homes. He founded his business with 3 co-founders (Lance, Lily and Larry) and has a shareholders’ agreement in place. The four of them met at university and decided to build their marketplace.

Lance and Larry are passionate about wine and have a background of oenology. Lily is a developer; she built the first platform and collaborated with Liam on business-related matters. They all work in a small office in North London.

After 1.5 years in business, WineToGo features a first selection of 20 UK wine providers and developed its activity in London. However, the business requires funding to expand to the UK (especially Manchester and Birmingham).

Liam and his co-founders are looking towards the future and are happy to get legal advice. They have a focus on investment but also want to explore the possibility of needing future contracts. They plan on having more team members in the near future (business development consultants to prospect wine producers and developers). Liam and his co-founders want to know what to expect and they should have in place for their growing company.

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Contracts (drafted by specialist lawyers)

5 contracts

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4 drafts

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Digital + calls + in-person meetings

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5 working days

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Unlimited

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“My businesses are successful and I want legal services in the long term” – Lynn, Founder of ConsciousDressToImpress.com.

Lynn is a serial entrepreneur who has founded 6 businesses and successfully exited 3 of them. Her sixth and last business is a sustainable fashion brand that retails exclusively online on her website, ConsciousDressToImpress.com.

Lynn is currently generating a stable £4 million a year of revenue and makes between £750,000 and £950,000 of net profit yearly. She really loves being able to bring sustainability and awareness to one of the most polluting and wasteful industries on the market, and now wants to stop building businesses to just focus on this one.

Unlike her previous businesses, Lynn does not want to sell. She wants to stay managing director for the foreseeable future, as ConsciousDressToImpress grants her a job she loves and stable, high income.

Lynn has used Linkilaw previously in her other businesses and loved the work they did for her. It was made easy, accessible, and affordable. She loves being a Linkilaw member because she feels the Linkilaw team is focused on the long-term and on maintaining an honest, professional and friendly relationship with her and her business. Amelie, her dedicated legal point of contact is also a fan of sustainable fashion and loves wearing ConsciousDressToImpress.

PRO MEMBERSHIP

Contracts (drafted by specialist lawyers)

6 contracts

Drafts allowed per contract

3 drafts

Type of communication

Digital + calls

Priority of service

Over non-members and digital members

Speed of contract turnaround

5 working days

Annual business review conference call

Included

Bonus legal advice

30 minutes per contract

£9,000/year or £800/month

“I want a check-up on my contracts and make sure everything is in place.”– Logan, Founder of InvestMap App

Logan created the InvestMap App 5 years ago with one of his long-term colleagues, Lauren. InvestMap is the tool for people who never invested and want to start. Via the app, the consumer learns about how to make wise and long-term beneficial choices; is invited to invest at the right time, and gets updated on the next gold mine.

Logan and Lauren already have a few consultants and their app has been adopted increasingly that it’s now difficult for them to manage their activity with their original team. They now want to implement more structure into InvestMap in order to get more staff and be able to get to the next level.

Logan comes to Linkilaw and expects to review the first contracts that have been drafted when he started his business and get more for his new coming employees. He is very keen on ticking boxes and making sure that InvestMap is secure as it goes on.

It’s been 8 years since Leah created Move.In, selling kits for students moving to another city (including cutlery, first food, sanitary and emergency essentials). Leah started on her own the business but hired 41 employees during these couple of years. She has now 30 employees and operated over the United Kingdom, Germany and France.

With long-term partner contracts who feed her a stable stream of leads, Move.In has established itself as a leader in the market and currently generates over £3 million of yearly revenue. Its growth is also steady (5-10% a month).

Leah is looking for a legal advisor who will take on the role of in-house legal counsel, but without working full-time. She wants to work with someone who knows and understands her business and proposes the most commercially minded decisions. She doesn’t have the budget for full-time legal counsel, but would nevertheless like to have a lawyer she can reach whenever she wants.

Leah was looking for someone who had expertise in both commercial contracts – ensuring she created real win-win situations in her partnerships – and employment – managing employee onboarding documents such as offer letters, employment and option agreements, staff handbook. Leah now works with a dedicated Linkilaw lawyer and is delighted that she is able to work with a senior lawyer at a rate that is significantly under her budget.

PRO MEMBERSHIP

Contracts (drafted by specialist lawyers)

9 contracts

Drafts allowed per contract

2 drafts

Type of communication

Digital + calls + meetings

Priority of service

Over non-members and digital members

Speed of contract turnaround

7 working days

Annual business review conference call

Included

Bonus legal advice

1 hour per contract

£12,800/year or £1,200/month

“I want to get legal work sorted with a moderate budget.”– Lara, App developer

Lara is an app developer who created custom mobile applications for startups. She often works from her clients’ offices to get immediate feedback on her work. When she’s not working from a client’s office, she works from a co-working space or from a local cafe. Her accountant recently told her she should create a business entity for tax and liability purposes.

Lara’s business is already taking off, so she has a moderate budget to spend on getting her legal work sorted. She knows she wants to incorporate her business, write her own terms of business to use with clients (instead of just accepting the terms they provide her with), and make sure her new website has the documents it needs, but she’s not confident in her legal knowledge. She wants access to legal advice for all the small questions that pop-up day-to-day.

Lara loves working with Linkilaw because her dedicated legal point of contact, Gillian, is knowledgeable, responsive and friendly. She likes that Gillian knows and understands her business and long-term goals. The legal solutions Lara receives from Linkilaw are not only accurate, but they are also commercially-minded and thoroughly thought through.

Lara is grateful to have been introduced to Linkilaw by a friend and she now recommends the Linkilaw membership to her clients.

PRO MEMBERSHIP

Contracts (drafted by specialist lawyers)

3 contracts

Drafts allowed per contract

5 drafts

Type of communication

Digital + calls

Priority of service

Over non-members and digital members

Speed of contract turnaround

7 working days

Annual business review conference call

Included

Bonus legal advice

Unlimited

£4,000/year or £350/month

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